[Elrond]

Wow. I did expect this idea to be a bit on the controversial/radical side, but I didn't expect this much response.

First of all I want to thank everyone for his/her responses. There were many good points made. Especially the suggestion of magic as powers. That is indeed more the kind of feel that I seek.
Also I appreciate Kromm's point that all this is probably more in the realm of GURPS than of DFRPG. Very true, so my apologies for polluting this forum.

A few points on Tolkienian magic.
A lot of stuff is happening that is experienced as magic but is not necessarily that. When Gandalf sets the wargs on fire in The Hobbit, that's a pretty weak effect. The wargs are annoyed, but not killed and not even scared away. Gandalf and the dwarves still have to be rescued by the Eagles. I imagine that what the dwarves experience as magic, might really just be some phosphorus thrown down. Gandalf is quite adept in suggestion. Same with the fireworks. The hobbits experience it as magic, but it could just as well be some clever pyrotechnics. Saruman has a very high level of Voice, but also that is more of a power/advantage than a spell in my book.

Music and song is evidently very powerful in Tolkien-land. But I think that is more like DFRPG bard songs than like magic spells. More a power than a spell. But of course the difference is a bit blurry. When I talk of "spells" I mean the "abracadabra - zap" kind. And the "can't be bothered to search for the key, let's just shape a hole in the wall" kind.

A lot of prophecy and visions are going on, but that is to be expected in a world were the Valar are evidently very real and present. The Valar are relatively hands-off but their presence is very real. Of course it's also a bit of a writer's crutch to allow people to "know" stuff they couldn't know otherwise when it's dramatically necessary that they do know.

But this isn't a Tolkien-scholarship forum either. I suggest we close this issue. I got a lot of great feedback and want to thank everyone for that.